The last contract of the 2023 harvest (the June contract) on the potato futures market ends the season with an expiration at €52,10. The outstanding contracts will therefore be settled at the cash settlement (€52,10) of week 23. This is the highest price since the introduction of the cash settlement method on the potato futures market.
The highest contribution for the CS came from the Netherlands, which recorded a higher contribution of €54,50 than Germany, which contributed €50,28. France was slightly above that at €50,60. The contribution for CS from Belgium, where Viaverde (former PCA) was already trading at €55 on Tuesday, amounted to €53,10. Last season, the June contracts were settled on the basis of a CS of €50,70.
The June contract could basically be an interesting contract, as the potato season has been stretched further in recent years. Most buyers can easily oversee the season until May in terms of planning. Later in the season it can get exciting in some years (like this and last year). However, last futures market season, trading of the June contract was extremely limited, just like the April 2024 futures contract. After the withdrawal of Saxo Bank as clearinghouse (financial settlement of futures contracts) just at the start of the growing season, the build-up of positions was blocked. The new provider of this service (ADM Investor Service BV) was not sufficiently able to respond quickly to this blockage. The result was a very poorly functioning futures market.
Turnover
Now with the new season of harvest year 2024, the potato futures market is lagging behind in terms of turnover and the volume of open positions. The high contract price seems to be to blame for this, the idea seems to be to contract more and use the futures market less. Now with all the excesses in the field in the EU-4 potato countries, the April 2025 quotation is already being pushed towards €40, which is already well above the contract price level. However, the question remains whether interest in trading on the futures market will be able to recover. With another season in which turnover and position building are insufficient to keep the instrument going, ending this market may be a logical consequence.
What the years will bring after the possible disappearance of the potato futures market remains to be seen. Being able to indicate a market price in mid-June of, for example, €40, as is the case today, is no longer an issue. All (perhaps partly) contracts related to the futures market will be cancelled, as will the option of hedging as an individual grower or in a joint context (pools). The question is whether those interested in the market realize what the effect will be if there is no longer a price indicative instrument (read: the futures market), especially during the growing season! You would say that with increasing risks associated with potato cultivation, this blind spot would fade somewhat and the value of the potato futures market - as there is in almost all other commodity markets (think of wheat, soy, oil, energy, metals, etc.) ) - would gain more perspective again.